tv MONEY With Melissa Francis FOX Business November 27, 2012 12:00am-1:00am EST
tomorrow we have and i told travis. we don't have one.onom we are expecting those numbers to be down. melissa: a little bit of a rebound bit -- maybe if. melissa: here is what is "money" tonight. warren buffett's plans tax hike critics claiming that higher rates would not put a freeze on investing. is the oracle of omaha having of false prophecy? 220 men join us with the reaction. egyptian president makes a power grab that could make a feral blush. violent protests break out. will they bring mideast turmoil to new heights? one of the reasons top experts. getting a pink slip for not getting a flu shot. one employer fires all workers refusing to get the flu vaccine.
is it legal? could more businesses follow suit? if even when they say it's not, it's always about "money." ♪ melissa: first, let's take a look at the day's market headlines. fiscal cliff years made a comeback and strong retail sales are not enough to offset the concern. the dow closed down 42 points. facebook shares some otherbest in four months. two formerly bearish analysts upgrade their outlook citing increasing revenue from mobile ads. and as our own charlie gasparino first reported, mary schapiro stepping down as chairman of the sec. officially leave office on december 14th. she ran the securities regulator for nearly four years. president obama will appoint current sec commissioner to run the agency. all right.
now to our top try. warren buffett support for raising taxes on the rich takes a controversy in its turn in an op-ed in today's new york times. the billionaire investor says let's forget about the rich in culture ridge. income is increased. forever for see investment of the charities. so buffett is on target with this. raising taxes on the rich actually have no affect on their investment behavior. let's bring in scott martin, chief investment strategist and founder and ceo of market 76. thank you for joining me. give me a reaction to this. >> i'm really surprised. i look at buffett as asavvy businessman and one who would not put a dime toward the u.s. government if he had a choice with regards to a buyout because certainly is not a great balance sheets they carry. it just doesn't make a lot of sense for me to say, if you're going to rase the barriers to entry, change the overa landscape of something like
raising taxes on investments, why you don't think that would discourage investors. to me, if you like history and see when taxes have gone up, you always see a negative effect. look at gdp alone. when the cuts from bush came through, gdp went up by almost 2 percent on average per quarter. before the cuts it was lower. that's something he needs to look at. melissa: it just seems so logical that if you take a dollar out of an investor sand, that impacts is behavior. >> i tnk that it is important to look at what people do rather than what they say so that we don't end up action -- accidentally inflating initiative posiion. what we do that markets 76 is monitor 2,000 advisers who are looking at about 70 billion worth of assets under management from affluent individuals, and what we are seeing in the data is no change of all. melissa: the tax situation hasn't changed yet. >> well, typically people look at markets as leading indicators
we would say that typically a flood individuals are going to act in advance of developments that they consider coming down the pike. the data is saying that somebody is going to back down on the democratic side. melissa: y'all think the sell-off as the election has been because people are anticipating taxes going up? the market has been terrible since the election. >> i think the market has been a little bit volatile, but i don't think that the sell-off as unnecessarily massive. the behavior n the investors indicates otherwise. we are seeing flows into of advisers and adises sticking it -- melissa: would you think? >> i disagree. very little interest. if you look at the volume alone, contrary to my muni bonds, one of the best of the year after the election. to your point about the taxation of other assets. to meet the market is already reacting to this approach and
what we think will happen in 2014 and 13. that's with a think is what is really going on. the market has had a terrible runs as the election. melissa: go ahead. >> i don't think you could have it both ways. the government's having terrible balance sheets and then trumpet the performance of many bonds. when it comes down to it, we are looking at is so low volume behavior in the market. at does not indicate a whole lot of certainty. melissa: what i think, if you think about the basic logic of the situation, take a dollar away from an investor, they invest less. the only time that doesn't come into affect is whenyou are warren buffett and have so many dollars you can't even keep track of the. for the average investor or the retired investor living of the dividends and has just their investments and social security try it is going to impact
behavior. >> right. the average investor, the average saver who has been punished by the federal reserve. unsaying munis are great investment, but if you want to talk about government bonds, who is buying treasury bonds here? the federal reserve. as of the average investor just to get nothing. that's like going broke safely. and that's the other question. let's tax the wealthy. well, what is wealthy? sunday that as 10 million in the bank, had a good year. there is not a clear picture of what the definition of that is. melissa: even if they are in daer, but this does not hurt the warren buffett's of the world and that they n't mind it, but a whole bunch of people who have saved for retirement under trying to live off those investments and dividends. it's going to hurt them instead. i don't lose sleep over tha. but we do worry about the much
smaller investor, maybe he doesn't impact the market where you think. they share care about this. >> that is entirely reasonable position to take, but it is also a little bit, let's say condescending to think that those people don't know what is best for them. melissa: i didn't say they don't know what's best for them. the amount they have available to investors less. they don't have a lot of extra dollars. >> i wasn't trying to indicate that you were saying that. those people tend to be reacting to the news that obama was reelected in a way that indicates that they are not terribly concerned about tht. all i can do is monitor the data and tell you where the risk is going and where the risk is coming off. what i'm seeing is that they're putting respond. it might be the case that they're doing it because they're good -- getting private -- pushed further of the treasury curve, but it is what it is. melissa: thanks to both of you. we appreciate your time.
president obama is supercharging his campaign to raise taxes on the wealthy. taking the fight online sending mass e-mails to supporters to massing them to use social networking sites like twitter and facebook and youtube stirs their congressmen and women to support this plan. democratic strategist and political analyst says these tactics could backfire. he joins me now. >> i think what the president is doing is fair. he should be activating the millions of people out there who have supported his policies in the context of the presidential campaign. when you have moss -- massive lobbying efforts going on for all sorts of industries to and what ishe scope of negotiation, you should absolutely get the public inlved and try to use their ergy. it is fair to be doing this. he has to be careful. the obama administration has to be judicious with the amount that it taps this network.
you have millions of people here . you want to activate their energy only when it's absolutely necessary, and think it is. we're looking at the number one priority right now are at the beginning of this administration . melissa: how big of an impact something like this has. if you try and get people all excited on facebook and twitter, what they're really going to do? call their congressman. the congressman are pretty sophisticated people. just reelected. the most time possible for ther constituents to forg and also know that president obama fired them up to call them -- to get people to go call. they know where it's coming from i wonder if it's worth it. >> i don't think it is a political tactic. ureters suggesting that the congressman easily checked these people are just pawns in the obama administration. i don't think the art. if ty're calling their congressman, the congressmaman e accountable, as you know, a democratic society.
and so ad if they are airing their opinions, i think the congressman are absolutely going to have to listen to what the people who voted in their district of st. lissa: very focused along the lines of who is going to vote for me and who is not. the people who will respond to a pretty hard-core democrats. it's a group of people, you know where they stand. i don't know that that necessarily influences their action. and now your out there and think that. i don't think it's new information there is a constituency that each congressman or woman has that once this obama administration priorities past and has a certain outlook and the fiscal cliff, but every single one of the people that are voting and that persons district has an interest in this fiscal cliff negotiation happening, and interest in the compromise being made. and so those -- when the first
freshman wave of the party is came in in 2010, when we are negotiating the grit -- debt ceiling this would be the first a dull moment for these freshmen tea party years. this is a second of all moment, and both sides are going to have to make serious painful concessions whether democrat who sacrificed domestic spending on programs that ou think a really important or republican. and generate more revenue with taxation. what the constituents once a republicans to take their oath of office more seriously. melissa: everybody has a stake in the ground about what they want their congressman to do. all very different. that's or hung up. that's -- thank you for coming up. >> thanks for having me. melissa: an unprecedented power grab assets of violent protests as that treat sets and before israel and a mosque. how quickly could the region's fragile lps unravel?
♪ melissa: a sudden power grab by egyptian president sparking serious protests, but now apparently making some partial concessions to egypt's top judges to help diffuse the crisis. the groundn the mideast is shifting by theday. israel is taking no chances, despite the cease-fire. the country is now testing a new iron dome-like missile defense system called david slang. it will stop midrange rockets. is it preparing for a new wave of turmoil? we turn to naval analyst with the institute for war. welcome back to the show. i wt to jump riht in. let me ask you about what is going on in egypt. today you think mohammad really is? when we left for thanksgiving break last week he had stepped in and helped settle this
problem and brought about the cease-fire. even the israelis said maybe he is more moderate than we thought. all this and he makes this huge power grab in his own country saying that his rule is about law, basically. judy you think he is? >> thank you. it is a pleasure to be here. that is the million-dollar question. who is the and what to see what. it looks like he was committed to peace, committed to the process of at least normalizion in the short term of relations between israel and gaza. this latest power grab, a lot of people, including myself, by surprise. important to keep in mind that there are three power centers in egypt. the civilian elected leaders, including president more see in the parliament. second, the judiciary. and third, the military. what hettempted to do was take away a good deal of the judiciary authority and take it to himself which has been met by immediate and stiff resistance from the judiciary and apparently a good deal of the
egyptian population as well. melissa: and this seems like his biggest problem is probably economic. i mean to know when you look at what has happened to this country and probably what inspired, you know, the eruption in the first place that brought him to power there, the biggest wheat importer in the world, ultrasensitive to food price rings as a result. tourism in a freefall obviously. people used to go see the pyramids. thisas a big source of income. do you think that economics will be the thing that comes along and undo him? >> well, as you are fond of saying, it's all about the "money." get right down to it. egypt and the poor economy for quite some time and it is degrading. we see tourism plummet, and there is no hope of that coming back anytime soon. we don't see any real industrial activity in egypt. we see a very inefficient agricultural sector. a lot of things are wrong with the egyptian economy, and unfortunately president more see in the muslim brotherhood are focused on an agenda of
distribution, redistribution of wealth and the welfare state which is just not a prescription for economic succes in the short term i think he is trying to shore up his power by taking some power back from the judiciary. then he will try to appeal to the poorest egyptians by redistributing. melissa: he better do that quick. don't want to run at a time without asking you about david's slang. a lot of made -- a lot was made of the iron dome. the net cost to israelis to shoot down one rocket is somewhere between $50,150,000. at the same time, you know, the moss is being supplied with rockets that are a few thousand dollars. you can see if this was just a battle of money that israel would lose pretty quickly. is david's a sling any cheaper or more effective? what do you think? >> first off, iron dome performed fantastic. the follow-on, israel knows it has to drive its cost per
projectile down. there is no easy way to talk about this other than saying, iron dome is fairly expensive for what it does. they are looking to develop the system. in france the technological advantage. they can drive a little closer toward parity in terms of the economic struggle. melissa: any idea how it works differently? i know it's pretty new. >> it's no problem at all. iron dome is basically a smaller version of the patriot missile systems. it shoots down smaller projectiles than the patriot missile system is designed to shoot down, but its use down ballistic projectiles, ballistic missiles or ballistic rockets. but david slang is designed to shoot down everything that ironbound can shoot down in addition to that it will she down cruise missiles which fly at a much lower altitude and are more difficult to detect and target
melissa: thank you so much. some much good affirmation. we appreciate your time. >> thank you. a pleasure to be here. melissa: thanksgiving weekend solemn most shoppers of all time how is that possible? not all holiday cheer. we will explain. plus, not getting a flu shot. could more businesses potentially do the same? i don't want to see anyone. it details coming up next. you never have too much "money."
that broke records for the busiest ever. a stunning 247 million people shop online and in stores. that's a lot of folks. online sales reaching more than a billion for the first time, but our consumers just going after bargain-basement deals or have they actually stop worrying about the economy? of its really revving of spending? joining me now, president of palin financial group. welcome to the show. what do you think? people are out there spending, or is this i'm going to get out there and bargain shop because the deals look great. >> a little bit of both. some good deals out there, both in the stores and online. door busters, believe it or not come online. amazon started at midnight last night with 55 in stevie, panasonic tv with a 55% discount. pretty impressive. so i was not up at midnight to see it, but all day long, every hour more deals coming on line. continuing. really get at this. they have it down.
melissa: coming out of the day strong because they figured out how to of rich people into a frenzy. it does not say how much you have to spend. >> it's a little early to know what it is going. i think it's going to be a good holiday. two more days this year than last. two more days a week and spend money. people are ready to spend. more than a million people with jobs and did not have jobs year ago, so you have more people in the economy. it's both. they're looking to spend money, but i also think they want the deals, and the internet. melissa: a fraction of people less talk on line, it sounds like it is huge. but i read that for the whole weekend people spent $60 billion. >> such a tiny fraction. >> and if you look at consumer spending, is done on-li, you're talking about less than one in $10 going on line, which is whether growth is so great there. but every year the growth is bursting at the seams.
depending upon what did you pick you could be looking at 26%, 32%. expecting today, cybermonday, 20 percent growth. those are phenomenal numbers. melissa: i sort of thing people shop on the first and last and not in between. is that have really works? >> yet the most and the first and last date, but you do hve people every day going. in fact among when you look at most people, something like 59 percent of people out there over the weekend said they have only completed about a quarter of a shopping. melissa: still way ahead of me. a lot of people have estimated about 3 percent more people will spend this year than last. tear 4%. home values are terrible. unemployment is awful. the economy is terrible. europe is falling apart. the fiscal cliff as everyone terrified. the market is scary. how can people be out there spending more than last year? >> pent-up demand. have been coming every year,
hearing about one negative thing after another since the 2008 banking crisis. it has been terrible. people are ready to move on. melissa: they don't just get used to spending less? >> people who are rational. but the average guy out there is broke and is probably always going to be broke. there is nothing hard wired and us to be prudent. we go out and spend everything that we have. and then some. and d you do have -- even though unemployment is high. we have more people in the work force to more people working in a year ago. that helps move us down the line a low bid. melissa: okay. thank you for coming on. great information. so there are plenty of ways to get fired. what about not getting a flu shot? one employer is terminating scores of workers. is it even legal? the details are next. i have been fired, not for a flu shot. plus, green energy requirements help push up electricity costs across the u.s., but a new push
so thankful gift as they left to go othe thanksgiving, termination notices. the fifth largest employer in the region had a companywide policy that all employees must get three shots. when 150 of those employees fail to get there shot, they were told, sorry, no shot, no job. is it legal? do this? joining me now, fox news medical 8-team and criminal defense attorney. thanks to both of you for joining s. let me your immediate reaction jack have you heard of something like this before? >> always a controversy. legally -- and another lawyer, but if it is in the contract it probably have a legal right to do this. my issue is medical. because the flu shot is only about 60 percent effective at any given year. even the prevailing strains the year. i have a rationale for wanti employees to have it, especially in the medical community. to employees that have not done
it yet. i'm not letting them go. 60 percent ffective. michael is to close something called the herd immunity to. if i give everyone in my employer a fu shot it may protect my patients from getting the flu when they are on the premises. it may protect pregnant women, people with chronic illnesses, the very young in the very old. just the people i want to protect by creating a ring of immunity. i can see making it a condition for hire. this is not a big pandemic going on, like a contagion or if you dot get this shot you're going to die. i have a problem. melissa: a they have a legal leg to stand on? >> they don't have a legal leg to stand down as far as a lawsuit for being terminated. the fact that ohio is an employment at will state to miss a what that means is that the employer can hire them and fired them at will and as long as they have not violated any kind a statutory rule in the termination of the employee, thin their rights determined that employees. getting a flu shot is quite
simply something they can ask their jobs. melissa: so these employees have no resort -- records. >> they don't really have any recourse. there are certain things that employers cannot do. they cannot fire the person as a result of some concern about race, gender. melissa: what if they have a phobia of meals, they dn't want the pain. you can force someone to hurt themselves? what if that is a complaint. >> i really don't think that they have a legal leg to stand on to sue because what the law says is that an employer can fire someone at will, basically as long as they are not violating one of the statutory reons that are written into law the cities of the reasons you cannot fire someone, they can do it. melissa: the flip side of this is that i can see, it is sort of likehen company said that there were not willing -- i can rember which, but fire everyone who did not quit smoking because they did not want to pay for them on the health insurance plan.
these are people that are working in a health care situation. like you said. they want them to be immune. but it's kind of like no one is forcing you to have the job. if this is the requirement, it's almost like larry uniform. if you're not willing to have the flu shot or quit smoking you can't have the job. >> i have a mixed feeling about this. we only have a 42 percent compliance for the flu shot. i wanted to be 100 percent so that we treat this herd immunity let's get the whole herd vaccinated. melissa: one darn strain. >> it's actually try. restrains. it said debt virus. it's not giving anybody the flu. this mandatory. i want everybody to take it. what if somebody get a bad analogy to this shot. you have to take it. what if they get sick? melissa: what if we find that there is some side effects of these flu vaccines. maybe that is what is giving
kids autism. decide that these flu shots cause something else. is the company opening themselves up to a liability? >> i think that is definitely an interesting question. if an employer is mandatinga certain activity or flu shot and it turns out that that thing they are askin employeeto do is dangerous, they can be responsible for the decision they have made on the employee's behalf, and that think that is certainly something they should take into consideration. melissa: thank you. fun discussion. for everyone else wasfun. here's our question. should employers be allowed to fire workers for not getting please u? you guys were spirited about this one. we want to hear what you think. follow me on twitter. renewable energy mandates are spreading in helping push up electricity costs as a result. a new proposal moves to turn the lights out on them for good. one of the leading man behind it
melissa: agree energy mandates are costing consumers serious green. one group says it as a way to upper relief. the heartland institute has written model legislation that would end the required use of renewable energy in 29 states on the name of cutting costs. james taylor, senior fellow for environmental policy with heartland institute. welcome to the show. you say that the standards requiring utilities to get a portion of their electricities from renewable power is actually worse than the tax. is that the quantitative valuation? >> when we pay taxes we end up sending our money into government. there is at least a chance that we will get something back in return from government. we end up paying more for our elected city because the cost more money to produce electricity. we are simply giving t same like to see back we were getting a four.
aying a lot more money, empoverish yourself. melissa: a cleaner environment. better for the ozone. all that kind of stuff. melissa: no such thing as an entirely benign energy source. for wind power, ure. fewer emissions. what you do is kill 440,000 birds each year according to the federal government. now, they are reducing emissions. our missions have declined to 70 percent since 1980. our air is pretty darn a plane right now. all we're doing is ready one form of energy or environmeal harm for another. melissa: one of this-that you drill down on is one that draws the bananas. if you go to the department of energy website and they compare the cost per kilowatt hour of generating alleges the, the tomb of the some pretty interesting numbers. this is a part of energy. they said the cost of producing
solar energy is $0.15 per kilowatt hour. i really don't tink the prices are actually that close. they also say because we're showing on the screen right now. wind production, over nine and a half cents per kilowatt hour. wind is cheaper thancoal. what is wrong with their mass? >> that is not true at all. if we strip away the subsidies, tax preferences to mobilize cost of pduction we see the wind and solar power substantially more expensive than coal and natural gas. on top of that, they this in some ridiculous figure where wind power will be 33% capacity factor meaning you can produce electricity at 303 percent of the time. what you're looking at is wind power is about 75% to 100 percent more expensive than conventional engines and solar power is uch more expensive than that, 3-5 times more expensive. melissa: you are teaming up with republican senator james in
half. and you guys are going to a go to capitol hill and try and get this done. what do you think of the odds? >> well, i think it eventually -- the american people, when they see the truth, see some figures they're going to understand that and we will see some difference. melissa: i wish i did. i wish ou. it doesn't. the subsies are so deply imbedded. industries are so deeply in bed with the government. so many people out there that believe that green energy is the answer. >> earlier this year i was meeting with legislators from various state when i presented this piece of legislation to repeal renewable power mandates, i did not have to do much selling in all. it was the folks in the industry, wind power, solar power, some of the utilities
themselves were fighting it, but the legislators themselves in states that have these chernobyl power mandates on the books are raring to go. may take a little bit of time to develop the political momentum, but it will happen. melissa: i appeciate your optimism. keep us posted. >> thank you very much. melissa: time for today's fuel gauge report. natural gas prices plummeting more than four percentage. weather forecasts are predicting a long start to december lowering the outlook for natural gas demand. comical philips will sell its stake in the kazakhstan oil field for $5 billion. one of the biggest, but development has seen a wave of delays and cost overruns in recent year. expected to take a $400 million writedown on the sale. and iran is planning to increase oil storage capacity. any project would add more than 8 million barrels to at its offshore stoge facility by next year. sanctions have made it increasingly difficult to sell
oil on the international market. or they are producing more. he needs a black friday stampede and walmart? you can just watch this. a brutal bareknuckle brawl breaks out between two men. look at them. fighting to the death. it is not over a tv or shoes. women's underwear, and i don't see a woman in that underwear, so i don't really get this. you can neverhave too much "money." we'll explain. ♪
melissa: it's ti for a little fun with spare change. we are joined by our two guests tarah bendel and arew smiley. this happened at a victoria's secret in sacramento, california. in a mall, two women were digging through a bee and the fight started. it escalated their and involved three man. it is unclear what the cause of the mayhem was or how does changed course. what happened in the spirit of giving and holiday cheer -- this is like all over a pair of underwear.
>> have you ever thought of her underwear and victoria's secret? >> i mean, this is so crazy. melissa: maybe i have,ut i have not seen a lot of guys do it. this is just two guys slugging each other and it makes no sense to me. as the mail in the conversation, tell us what makes and. >> this is what happens when you grab a guy off the couch on friday after thanksgiving. look at the anger. melissa: even and victoria's secret, he was man beyond comprehension. and the chairman of hsbc wants tankers to start swearing an oath similar to that of what doctors take. it will help revive the banking industry in the wake of this
financial crisis. what do you think? >> it is a great idea. but the oath is only so good. if you don't have an honest thinker, if yohave non-honest thinker, tougher to make a dierence. >> you can take as many oath as you want. if you're not to follow the rule of law, it's not going to matter. >> there you go. politicians taking notes when they take office, right? >> i am not re that they always on the up and up. melissa: minute story is the owner of the southwest authority shooting gun store lately band obama supporters from going into his store. he wrote a newspaper ad and posted a sign. it said if you voted for barack
obama, your business is not welcome at the store. you have proven that you are not responsible enough to own a firearm. but now, business is booming. the sign in the newspaper ad has actually helped them enough that business is booming. >> is bad business to alienate 51% of the population that voted for president obama. maybe we are not his target audience. there are a lot of gun owning democrats around. my grandfather was one and he would be totally offended by that time. my grandfather would've kept that in business for a long time. he had a lot of guns remapped i think it's great marketing. he knows his audience, he got a lot of publicity.
he probably doesn't a lot of democrats coming incitements anyway, but he's making a fortune. melissa: he said that he gets a phone calls of people swearing at him. but who knows where they are coming from. but the response habeen pretty positive hsaid. it's pretty funny. >> when you own a bunch of guns, it's pretty easy to make a stand like that, right? melissa: that's right. forget candies, snacks, and a soda, beverly hills caviar has unveiled its first caviar dispensing vending machine. this machi offers a large selection of the world's finest caviar. truffles, escargot, ev mother of pearl pink in a vending machine. what do you think of this? >> i think it's a great idea. everything is in the vending machine these days. ipods, et. so let's say you have a guy who needs to pick up some lingerie
and dignified a victoria's secret, pick up some caviar from a vending machine, and he goes off to meet his girlfriend. melissa: i have a couple of serious questions. how do they stock it? how much they sell in a given day? what they sell one candidate? this makes sense to me. >> this is so california. this is why i'm not in california. but then to have escargot in those machines. escargot on its own is problematic. but then putting it in a vending machine -- like there is a huge market for escargot. i don't get it. melissa: i don't know, i don't need a lot of snails. [talking over each other] [talking over each other] melissa: i need some statistics. tell me how much you're actually telling and when you restart it. next up, beware of shale
workers. a hunting and fishing group is warning game owners to keep an eye out around active drilling and gas production areas. as work on well sites continue through the hunting season, hunters should watch ut for hunting force workers. [talking over each other] [talking over each other] >> i'm not sure that's a great combination or. >> i agree. i don't think that orange blazers are ing to solve the problem. melissa: i don't know, maybe they will help. [talking over each other] melissa: the holiday shopping season conduct othe weekend. seemed like everything is on was on sale. not if you are shopping for seven swans or five golden rings.
if you buy all he items repeated in the 12 days of the christmas carol, it will cost about $107,000. inact, you're going to pay 6.1% more the mustard and accoing to wealth management. what do you think? did you buy that list already? >> the most surprising thing is that made that are melting only get minimum wage. you would think that would change the entire equation. melissa: i have never seen anyone with a pear tre. we have a lot of tears, but i don't know people who have apple, oranges, lemons -- any of those trees in our backyard. >> i don't see too many pear trees. melissa: the price of golden rain has gone down. that's the price has gone down on the golden rings.